Municipalities using this construction-financing debenture process must follow this Regulation, and the municipal council and treasurer have specific pre-approval, reporting, and content duties.
Compliance with regulation 1. A municipality that passes a debenture by-law under clause 408 (4) (d) of the Act providing that instalments of principal or interest, or both, are not payable during the period of construction of an undertaking for which the debt was incurred shall do so only in accordance with this Regulation. O. Reg. 278/02, s. 1. Statement of policies and goals 2. (1) Before a municipality passes a by-law under clause 408 (4) (d) of the Act, the council of the municipality shall adopt a statement of policies and goals related to construction financing. O. Reg. 278/02, s. 2 (1). (2) In preparing the statement under subsection (1), the council of the municipality shall consider, (a) the fixed and estimated costs to the municipality; (b) whether the costs of the proposed financing for the construction of the undertaking are lower than other methods of financing available to the municipality; (c) a detailed estimate with respect to the municipality’s expectations of revenue generation from the undertaking, once constructed; (d) the risks to the municipality if the undertaking is not constructed or completed within the period of construction as estimated by the council; and (e) the financial and other risks for the municipality. O. Reg. 278/02, s. 2 (2); O. Reg. 76/16, s. 1. Report on outstanding debentures 3. (1) If a municipality has any outstanding debentures under clause 408 (4) (d) of the Act in a fiscal year, the treasurer of the municipality shall prepare and present to the municipal council once in that fiscal year, or more frequently if the council so provides, a detailed report on all of those debentures. O. Reg. 278/02, s. 3 (1). (2) The report under subsection (1) shall contain, (a) a description of the estimated proportion of the total debentures of the municipality issued under clause 408 (4) (d) of the Act to the total long-term debt of the municipality and a description of the change, if any, in that estimated proportion since the previous year’s report; (b) a statement by the treasurer as to whether, in his or her opinion, all debentures issued under clause 408 (4) (d) of the Act were made in accordance with the statement of policies and goals relating to construction financing adopted by the municipality; (c) an update of the detailed estimate made under clause 2 (2) (c) with respect to the municipality’s expectations of revenue generation from the undertaking; (d) a record of the date of the repayment of each instalment of principal, interest or both principal and interest made during the period of construction of the undertaking for which the debentures under clause 408 (4) (d) of the Act were issued; (e) a statement of the outstanding instalments of principal, interest or both principal and interest repayable during the currency of the debentures issued under clause 408 (4) (d) of the Act that will be due and payable in each year; and (f) such other information that the council may require or that, in the opinion of the treasurer, should be included. O. Reg. 278/02, s. 3 (2); O. Reg. 76/16, s. 2. 4. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 278/02, s. 4.